Question

The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 21,400 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $3.60 for materials and $5.10 for labor and overhead, the total cost assigned to the ending work in process inventory was: Multiple Choice $120,696 $186,180 $111,708 $142,524

Answer 1

$142,524

Step-by-step explanation:

The computation of the total cost assigned to the ending work in process

inventory is shown below:

As we know that

Total cost = Material + Labor

where,

Material = 21,400 units × 100% × $3.60 = $77,040

And,

Labor = 21,400 units × 60% × $5.10 = 65,484

So, the total cost is $142,524

We simply added material and the labor cost according to their completion percentage and its cost per equivalent units